Investing.com – The euro was sharply lower against the U.S. dollar on Monday, tumbling to a two-day low after Japan intervened in the foreign exchange market to weaken the persistently strong yen.
EUR/USD hit 1.3975 during late Asian trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 1.4007, tumbling 0.98%.
The pair was likely to find support at 1.3863, last Thursday’s low and resistance at 1.4200, Friday’s high.
Earlier Monday, Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade.
Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi said he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.
The euro had rallied against the dollar last week, following the announcement of a new package of measures aimed at stemming the debt crisis in the single currency bloc.
The euro was also slightly lower against the pound, with EUR/GBP slipping 0.16% to hit 0.8759.
Also Monday, official data showed that German retail sales rose less-than-expected in September, increasing by 0.4%, disappointing expectations for a 1.1% gain.
EUR/USD hit 1.3975 during late Asian trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 1.4007, tumbling 0.98%.
The pair was likely to find support at 1.3863, last Thursday’s low and resistance at 1.4200, Friday’s high.
Earlier Monday, Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade.
Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi said he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.
The euro had rallied against the dollar last week, following the announcement of a new package of measures aimed at stemming the debt crisis in the single currency bloc.
The euro was also slightly lower against the pound, with EUR/GBP slipping 0.16% to hit 0.8759.
Also Monday, official data showed that German retail sales rose less-than-expected in September, increasing by 0.4%, disappointing expectations for a 1.1% gain.